What is e-commerce?

E-commerce has changed the way we buy, sell and build relationships with customers.

Today, e-commerce is not just about online shops, but an entire ecosystem of technologies, processes and tools that enable online shopping: quickly, conveniently and without geographical restrictions. From anywhere and at any time.

In a world where millions of internet users search for products, compare online offers and make payments every day, electronic commerce has become a natural environment for trade. What's more, it allows companies to reach potential customers around the world, offering a wide range of products, online services and digital products.

However, e-commerce is much more than it may seem at first glance. It is a complex process involving product sales, logistics, payments, IT, customer service and marketing (including Marketing Automation).

E-commerce in practice – what does e-commerce involve?

Electronic commerce is a comprehensive process of conducting commercial transactions via the internet. It combines product sales, customer communication, logistics, payments and after-sales service in one coherent system.

In practice, e-commerce involves much more than just an online shop. It encompasses the entire purchasing process:

• from the moment of first contact with the offer,
• through the ability to search for goods,
• the ability to compare competitive offers,
• to the moment of placing an order and making a payment.

Customers can make purchases quickly and conveniently, without leaving their homes, using the offers available in e-commerce or on various types of platforms.

In modern e-commerce, technologies that enable companies to sell products and services directly to individual customers, shortening the chain of intermediaries, play a key role. Bypassing this chain not only reduces costs, but also increases control over customer service quality and order fulfilment speed.

The e-commerce ecosystem consists of, among others:

• online shops and sales platforms,
• payment systems such as bank transfers, mobile payments and deferred payments,
• logistics solutions, including integrations with courier companies and logistics centres,
• marketing tools to support effective marketing strategies and sales automation.

Customer service is also an important element of e-commerce, which includes pre-purchase contact, support during the decision-making process and after-sales activities. It is the quality of communication and personalisation that largely determines whether a customer will buy, and then return and make further transactions.

Importantly, global reach allows companies to reach customers around the world, offering online products and services without physical barriers. This gives e-commerce businesses almost unlimited scalability, and customers access to a wide range of products, often unavailable in local, traditional retail stores.

E-commerce also includes the sale of digital products such as online courses, e-books and subscriptions, which do not require physical delivery. This model significantly reduces order fulfilment times and operating costs, making it attractive to both businesses and customers.

In summary: e-commerce is a multidimensional system that integrates sales, logistics, payments, marketing and customer service in a single digital environment. Online commerce is not limited to an online shop – it is a comprehensive business model that allows you to reach more customers than traditional commerce.

E-commerce models: B2C, B2B and C2C

The most common e-commerce models are B2C, B2B and C2C, which determine who sells products or services to whom in e-commerce.

Each of them differs in terms of the purchasing process, the nature of the relationship, the value of the transaction and the method of communication with customers.

In practice, these models determine the sales strategy, customer service, the selection of technological tools and the business model of the entire business. Choosing the right approach is crucial for scaling the business and building a long-term competitive advantage.

B2C: companies sell products directly to customers

The B2C (business to consumer) model involves companies selling products or services directly to individual customers via the internet.

This is the most popular form of e-commerce, used mainly by e-commerce, D2C (direct to customer) brands and sales platforms such as eBay and Amazon.

In this model, an intuitive purchasing process, an attractive online offer, fast delivery and efficient customer service are of key importance. Consumers expect convenience, transparent information, the ability to compare competing offers and secure payment methods, which directly affects conversion and loyalty.

B2B: electronic commerce between businesses

The B2B (business to business) model refers to electronic commerce between businesses, where sales take place between companies.

Transactions in this segment are characterised by higher value, a longer decision-making process and more complex commercial terms.

E-commerce platforms in the B2B model often offer individual price lists, negotiations, credit limits or system integrations. Operational efficiency, process optimisation and the ability to scale sales while maintaining high-quality business customer service are key here.

C2C: electronic commerce between consumers

The C2C (consumer to consumer) model is electronic commerce between consumers, in which private individuals sell products to other users via online platforms.

This usually takes place through auction portals, classifieds websites and online auctions.

This segment of individual retailers has been growing rapidly for many years. It is driven by the sharing economy, the sale of second-hand goods and the growing popularity of second-hand shopping.

C2C platforms such as Vinted and Poshmark provide users with tools for conducting transactions, rating systems and security mechanisms that increase customer (user) confidence.

Where does e-commerce take place?

Today, e-commerce operates across multiple channels simultaneously. Online shops, apps, marketplace platforms, auction portals, comparison engines and social media collectively create an environment where customers can shop from anywhere and at any time convenient for them.

In practice, the more points of contact with customers a brand offers, the greater the chance of reaching new customers, increasing conversion rates and building long-term relationships.

Online shops, e-commerce platforms

Online shops and e-commerce platforms are places where customers actually shop online – just like in a traditional shop, but without leaving their homes. This is where users:

• find the product they are interested in,
• read its description,
• view photos,
• check the price and availability,
• add it to their cart,
• and finally place an order and make a payment.

In practice, e-commerce works like a digital equivalent of a brick-and-mortar shop – instead of shelves, we have lists and product categories, instead of sales assistants, we have chat or a helpline, and instead of a cash register, we have quick online payments.

Auction portals and marketplaces

Auction portals and marketplaces are an important pillar of e-commerce, bringing together many retailers and millions of customers in one place.

Platforms such as eBay enable both classic sales and online auctions, offering a wide selection of products at competitive prices.

For businesses, this is a quick way to reach a wide range of potential customers, and for consumers, it is a convenient way to compare competitive offers in one place. Marketplaces also eliminate some of the technological barriers, allowing businesses to start selling without having to build their own online shop.

Comparison engines

Price comparison engines play an important role in the customer decision-making process, allowing for a quick comparison of competitive offers available in various e-commerce stores. Tools such as PriceRunner support informed purchasing and allow customers to find the best value for money.

For sellers, being present on comparison engines means increased visibility of their offer, attracting new customers and a real impact on sales growth. As a result, comparison engines are becoming an important part of the marketing strategy in the e-commerce industry.

Social media

Social media are increasingly serving as a fully-fledged sales channel in the social commerce model.

Platforms such as Facebook, Instagram and TikTok enable the presentation of offers, direct communication with customers and the smooth redirection of users to e-commerce sites opened in the application's built-in browser, where the purchase is finalised. There are also solutions that function as part of the application, such as Facebook Marketplace.

In practice, this means that the user sees the product in a post, story or advertisement, clicks on the link, and is immediately taken to the store's website – without having to manually enter the address or open a new tab in the browser. The entire process is therefore quick, intuitive and without unnecessary barriers, which significantly shortens the purchasing path.

As a result, social media platforms are no longer just a communication channel, but a real sales tool that allows brands to reach new customers, build relationships and effectively increase conversion.

Marketing and automation – how do CDP and omnichannel help win customers?

CDP and omnichannel strategy help companies acquire customers more effectively because they allow them to collect, combine and use data from multiple channels to conduct personalised, automated sales communication.

In practice, this means that all data about user behaviour – visits to the online store, clicks on advertisements, purchase history or responses to emails – is sent to a single central system. This gives the company a complete picture of the customer, rather than individual, isolated actions.

CDP (Customer Data Platform) enables the creation of detailed customer profiles, audience segmentation and dynamic tailoring of communication to their needs, preferences and stage of the purchasing process. Instead of sending the same messages to everyone, the brand can precisely target specific groups – e.g. people who abandon their shopping cart, returning customers or users interested in a specific product category.

Omnichannel ensures a consistent shopping experience across all touchpoints with the brand. Customers can start the purchasing process in the app and finish it in the online shop – without losing context, interaction history or personalisation of the offer.

Combining CDP with Marketing Automation allows you to:

• automatically respond to user behaviour,
• personalise communication in real time,
• run effective retention and cross-selling campaigns and loyalty programmes,
• increase conversion and cart value,
• build long-term customer relationships.

The result? The company sells more without increasing its advertising budget, and customers receive tailored, useful messages instead of random promotions.

Summary

Today, e-commerce is not just online sales, but a complete business model that combines technology, logistics, marketing and customer service into one coherent system.

Thanks to e-commerce, sales platforms, marketplaces and social media, companies can reach customers all over the world and scale their sales.

The key to success in e-commerce is combining an effective sales strategy with modern marketing based on data, automation and an omnichannel approach. It is the synergy of technology, processes and customer experience that determines competitive advantage and long-term growth in e-commerce today.

Read also: Omnichannel – what is it and how does it work? >>>

Frequently asked questions (FAQ)

What is e-commerce?

E-commerce involves the sale of products and services via the internet, from the presentation of the offer to payment processing and delivery. It covers the entire purchasing process, including marketing, customer service, logistics and sales automation.

How to start e-commerce?

To start an e-commerce business, you need to choose a business model, sales platform, product range (including building a network of suppliers) and a method of order fulfilment and payment.

It is also crucial to plan a marketing strategy and implement analytical and automation tools that will allow you to scale your sales.

What is the definition of e-commerce?

The definition of e-commerce refers to the sale of products and services via the internet, covering the entire purchasing process - from the presentation of the offer to payment and delivery.

Electronic commerce also includes marketing, customer service, logistics and sales automation.

Why does e-commerce offer faster deliveries?

Faster deliveries are possible thanks to process automation, logistics integrations and modern distribution centres. E-commerce companies optimise their supply chains, which allows them to reduce order fulfilment times to as little as a dozen or so hours.

What growth opportunities does e-commerce offer?

E-commerce offers almost unlimited growth opportunities thanks to its global reach, sales automation and operational scalability. Companies can easily test operations in new markets, expand their offerings and reach an ever-wider range of customers.

Why does e-commerce generate lower operating costs?

Lower operating costs result from reduced expenditure on retail space, stationary staff, traditional infrastructure, and often by bypassing the chain of intermediaries.

The automation of sales and customer service processes further increases cost efficiency.

What are the most important advantages of e-commerce?

The main advantages of e-commerce include:

• convenience of shopping,
• wide selection of products,
• ability to compare offers,
• global reach,
• lower operating costs.

What does the process of purchasing goods in e-commerce look like?

Buying goods in e-commerce involves selecting a product in an online shop, adding it to your cart, placing an order and making an online payment. The entire process is fast, intuitive and accessible from anywhere in the world.